Apple Inc. (NASDAQ:AAPL) may finally be doing something about that cash war chest that it owns – the one that seems to be annoying many investors – not the least of which is David Einhorn of Greenlight Capital, who has filed suit against Apple saying that the company is failing to provide value for investors by stashing $137 billion of cash. Thursday morning on CNBC, Piper Jaffray analyst Gene Munster – a popular source for information about Apple – addressed Apple in general and touched specifically on the cash dilemma and where he thinks Apple Inc. (NASDAQ:AAPL) will go with its cash in the short term.
In addressing Einhorn’s comments about Apple Inc. (NASDAQ:AAPL), Munster said, “He’s got a lot of support with investors I know, just in my conversations with the buy side. What he’s saying is exactly what a lot of the buy side is saying. They’re really getting tired of this obsessive amount of cash that Apple has had. I think in some ways Einhorn is really being a voice for what the broader buy side thinks and some of their irritation about how this has played out.”
“We feel really good about the products that are coming,” Munster said. “I know the Street is not as optimistic, but we’re comfortable with what is coming out. … (As for the balance sheet) I think that eliminating the option for preferred stock is a step in the wrong direction.”
What could send the stock in the right direction for investors?
